EOW books 10 members of edu society in Rs 10 cr forgery, fund diversion case

Hyderabad: Cyberabad economic offences wing (EOW) has registered a criminal case against 10 members and associates of the Vemula Raghava Reddy Lakshmamma Educational Society over allegations of large-scale forgery, fund diversion, and illegal control of the society that runs Malla Reddy Engineering College and Management Sciences at Kistapur in Medchal Malkajgiri district. The complaint was filed by businessman Vemula Kista Reddy, who was elected president of the society on March 24 after reconstitution of its managing body. He alleged that his brother, former president Vemula Malla Reddy, and relatives fabricated records to retain control. According to the complaint, forged general body meeting documents, fake resolutions, and altered by-laws were created, with signatures—including Kista Reddy's—falsified. These documents were allegedly used before banks, enabling unauthorised operation of society accounts. Funds were said to be siphoned off through online transfers, cash withdrawals, and diversion to personal and third-party accounts. The complaint pointed to suspected illegal transactions worth several crores. Loans of about ₹10 crore were allegedly raised in the name of the college without committee approval, while govt fee reimbursements and institutional revenues were diverted. "The accused gained about ₹9.7 crore illegally, and it may increase, therefore investigation is required," Kista Reddy stated. He further alleged threats to society members, withholding of original records, and illegal access to digital systems, email accounts, and online banking platforms to alter or destroy evidence. Based on the complaint, EOW registered a case against Malla Reddy and nine family members under various sections of BNS on April 17. "We are verifying the allegations and collecting evidence. Appropriate legal action will be initiated based on the findings," an EOW official said.